Assuming that net cost of purchases was $116,000 during the year and that ending merchandise inventory was $2,000 less than the beginning merchandise inventory of $25,000,how much was cost of goods sold?
A) $139,000
B) $143,000
C) $118,000
D) $93,000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Here, Beginning Inventory is $25,000, Purchases are $116,000, and Ending Inventory is $23,000 ($25,000 - $2,000). So, COGS = $25,000 + $116,000 - $23,000 = $118,000.

Assuming That Net Cost of Purchases Was $116,000 During the Year